Stockland linked to AMP fund bid

Some believe Stockland’s unexpected assault on Halcyon is a sign that recently appointed chief executive Tarun Gupta, who started last month, is keen to make his mark.

Stockland has been gaining plenty of attention of late as it moves in on Halcyon Group and stages an impressive performance on the Australian Securities Exchange as the nation’s largest residential developer capitalises on the booming housing market.

But there are growing questions in the market as to whether acquisitions for the group ends with Halcyon and some are wondering whether AMP Capital’s Wholesale Office Fund is on its agenda as well.

DataRoom understands that as well as GPT, Mirvac, Charter Hall and Dexus, another Australian listed party has made the shortlist to be considered AWOF’s new manager.

It is believed that Centuria, Investa, ISPT and Lendlease are all out of the race.

That may leave Stockland.

Some believe Stockland’s unexpected assault on Halcyon is a sign that recently appointed chief executive Tarun Gupta, who started last month, is keen to make his mark.

A lack of deal activity in the past has been a point of frustration for Stockland investors, who also lamented the group’s move away from office investment to focus more on residential, retail and retirement.

But the focus on residential has paid off in the current environment, with some nervousness now existing among office properties as more company staff work from home following the onset of the global pandemic.

AWOF has attracted a raft of different management proposals at a time when AMP has faced a major exodus of staff in recent years and suffered from underperformance.

Several high-profile AMP names have wound up at Stockland, including its investments general manager Nick McGrath, who previously ran AWOF, and former AMP Capital boss Adam Tindall, who began as a Stockland director this month.

Louise Mason, Stockland’s commercial property boss, is also AMP Capital Real Estate’s former chief operating officer.

Some real estate investors in AMP’s real estate funds have become jittery and have called for redemptions following instability at AMP Capital.

The drawcard of having another manager could be lower fees and an easier access to redemptions.

Working on behalf of AWOF investors to consider whether another manager should be sought is Jarden.

On offer is the opportunity to manage three prized office assets in AWOF: the Quay Quarter complex at Sydney’s Circular Quay, the 200 George St office building and the office complex at Sydney’s Angel Place.

Meanwhile, Stockland fended off competition from Macquarie Group and Ingenia in the Rothschild-advised process to be awarded exclusive due diligence to buy the $650m-odd Halcyon business, based in Queensland.

Stockland declined to comment on whether it was pursuing AWOF.